Oregon Business Association

February 26, 2009

As a Champion of the Rainy Day Fund, OBA Calls for Restraint in Tapping Reserves

STATEMENT FROM OBA PRESIDENT RYAN DECKERT:

There is no doubt that Oregon is experiencing a rainy day.  However, the recent revenue forecast of a $3.1 billion shortfall for the 2009-2011 biennium clearly signals a coming tsunami.

The fiscally responsible approach to dealing with the 2007-2009 deficit is to preserve our limited reserves for the more challenging days ahead.

In 2007, it was the business community, led by OBA and working with the Governor and legislators, that created the Oregon Rainy Day Fund.  The business community agreed to redirect more than $300 million of corporate kicker revenue into the fund, giving us a much needed reserve fund for the first time in Oregon’s history.  It is with this commitment to Oregon’s long-term economic prospects that OBA advocates keeping emergency funds in reserve.

The business community has an important role to play in these economically challenging times. OBA has created an Economic Crisis Taskforce to do just that – lay out a plan for dealing with the revenue shortfall.

The OBA Economic Crisis Taskforce now begins its work on a set of budgetary and non-budgetary recommendations that include evaluations of possible budget reductions and revenue increases, as well as an assessment of programs and ballot measures, that currently dictate legislators’ budgeting options.

This crisis should be used as an opportunity to emerge stronger and more focused on Oregon's economic competiveness and quality of life.